By Steven R. Drexel, CEO Cornerstone Staffing Solutions

The Jobs report released today (Friday, September 04, 2015) reporting on August’s results, was a mixed bag.   The headline number, the change in nonfarm payrolls, was a disappointing 173,000 positions compared to the three-month moving average which was 221,000.  This was clearly less than expected and below trend.  Labor force participation remains low, another sign of slack.

On the other hand, the unemployment rate improved to 5.1%, a better than expected result, suggesting that the labor market is solid and improving. Additionally, there was welcome, above trend, progress with respect to average hourly earnings and measures of hours worked — indicating better conditions for workers during July.

On balance, this report indicates that the employment picture remained healthy during August.  Further, the subsequent weekly reports have held up sufficiently to indicate that the volatility in China and the financial markets has not materially affected the jobs outlook.  To be sure, this report was an important milepost in terms of assessing the health of the domestic economy during a period of some considerable tumult.  The outlook remains positive with the most likely scenario calling for the continuation of a gradually improving labor market with moderately increasing wage pressure and talent shortages as the economy inches closer to full employment.  Slowing growth abroad and a stronger dollar will likely slow the rate of growth in the U.S.; but at this point, these factors are not expected to derail our recovery.